coming up, the central banks act and the markets react, from washington to brussels to beijing, it has been an intense week of focus on monetary policy. earning season is here. some companies missed targets. get the stories beyond the numbers. controversy rocks valley and pharmaceuticals. macau.asino opens in plus the most compelling digital video and telling charts from around the world in the last five days. this is "bloomberg best."

david: welcome to "bloomberg best," a weekly review of the most important news coverage, analysis, information, and in-depth journalism from bloomberg's intelligence networks. central banks and monetary policy made headlines in the u.s., europe, and asia. >> i do believe that there is ise evidence that the fed getting increasingly nervous about being at 047 years now. zero for seven years. unemployment rate likely to grow. and yet we are still at emergency policy settings. policy -- make

it is an extraordinary period. >> vice chairman fisher agrees that we are at emergency levels. >> and is the big question -- the piecesaid is were in place. i know we didn't have anybody else who is examining this very closely. >> michael mckee is in washington with a question. michael: in the boilerplate about when they are going to raise rates, they have been saying for months and months in determining how long to maintain their target range they will assess progress on inflation. in determining whether it would be appropriate to raise the target range in its next meeting. how much of a commitment to you see that being and how hard would it have been to get that

-- thee statement yet co statement yet co -- the statement? >> regardless of what the outcome is they will debate the issues on the merits. i obviously wasn't there. have a lot of the same debates take place in this meeting that you didn't in the previous meeting. in 2015e kept saying and the meetings are all live meetings, there was a debate whether a press conference would matter or not. i think they are keeping it on the table. >> he would once again reemphasize you do not cover up the importance of the exchange rate. my first question would be the

expansion of the qe policy. that as a response to the ecb last week yet co >> we have to be vigilant when it happens. expanding our qe program and creating clarity. going another six months until next summer. that may be easier to understand. incredibly active over the last 12 months. they wonder why the central bank is being so aggressive. what is it about the effects channel that is causing concern in this week's economy that it is pushing the central bank to do more? >> if they were to depreciate quickly it would be harder to get inflation around 2%.

given that inflation has been low for a while we need to get inflation up to 2%. what happens really matters. >> within this is an idea of pushing markets or telling the yield curve what to do. me what humility and new model building you have learned in the nest -- in the last couple of years. if the model is old, what is the new new for you and your bank? >> time will tell when things settle down what those models will look like. we have to use many different tools to get inflation up to 2%. >> we have been talking about china stimulus moves. the rate cuts were not the most interesting part of the announcement.

>> it wasn't too much in a surprise. is the remove with the deposit -- with the deposit rates. it should make a big difference. over to the plan of opening up capital markets in terms of expectations going forward, we are going through a easing environment. something room -- something says the rate cut is not the end of the story here. >> is the economy generating enough growth to create employment opportunity that will essentially be soaking up 10 million urban jobs? beit can i think it will comfortable.

if not they could do more. >> the stimulus comes as china's leaders gather in beijing to formulating plan for the nation. expect plenty of policy continuity as manufacturing and construction growth continue to fly. >> what we are looking for is a little more detail. for example, green industry. that is something moving up the agenda. not quite clear on what the parties overall strategy is on this. that is the sort of area where we can look for more details.

david: it has been a busy period for quarterly earnings. let's take a look at the companies in the spotlight this week. out and bring in hans nichols, international correspondent. the guidance not great, either. 2015 sales in line with 2014 sales.

think the operating profit loss is that it is bigger than analysts is -- analysts estimate. more of these numbers are going to be trickling through every second. the numbers are important. we should take note of that. what would be more important is the conference call later on today. that is when the new ceo will get on. remember they have already set aside 6.5 billion in provision. solidtill don't have a idea of what this is going to cost them and what their technical fixes. the 1.8 and 1.6 of the decent engine. in some ways these have been bouncing around. not overly surprising. we basically got a good sense of where they are heading. still waiting to see what the october numbers.

bit of marketttle share. about 1% in the european market. sales of audi and porsche, those are two profit centers for the volkswagen group. >> net income more than doubled. wall street estimates and the stock is falling. >> thank you for joining us. let me ask about the bottom line. pretax profit was better than a lot of most analysts had forecast. >> let's talk about the estimates. we blew through the revenue estimate. in terms of cash flow we blew through that as well. a tax rate difference

of one percentage point. we came in at 33%. that is the difference of the penny. overall we outperformed and nailed it. -- you came inve at $.45. the shares are off. what do you think is driving the stock loss? met expectations with revenue stronger and cash flow stronger. our net income was $1.9 billion. we grew volumes up, revenues up. pass the quality of the performance they delivered,

the value will be recognized by the market. >> you guys missed on eps. for the investors who want to see profit growth, what do you have to say about them? >> i cannot predict day today stock prices. what we announced was one of the most complete -- completely in line with the company. 1.1 million postpaid customers. 843,000 postpaid phone ads, which is as many as at&t lost. 42% increase year over year. a cash flow of 400 11 million,

normalized to 487 million, which was a tremendous result. both of which we anticipate will continue. i am really pleased with the overall results of the company. >> there are analysts who say this is the first disappointment from t-mobile in a wild. >> i think these things will settle down. we kept our guidance the same. our surface revenue growth was 11% year over year. there is short-term what people have misinterpreted last quarter's tax rate. one time commissioning costs. the net income and earnings per is directly in line with

what we expect to do and continue to do. >> when you reported the numbers this morning it looks very disappointing. >> it dug deep into its pockets. not sure how much you are actually touching. it is a 10 million by back. do -- we do know details off of that already. just of a $3.5 billion. bringing this back into the treasury and they will be canceling altogether. dividend starting next year. let's get those results we talked about.

based on the exchange rates it is based on four 5 billion u.s. dollars. income.net is lessch i should note than half of what apple reported yesterday. many other things like mobile phones. >> mobile phones faces what we are interested in as well. >> it came in a little lower than last year. 23.8, if iut remember correctly. apple was over 11%. the big one was falling. in bloombergg

intelligence analyst, good for you to join us. that had been in the works for a wild. >> i would say this comes as a huge surprise for investors. back was roughly -- it came down slightly from the maximum 5% gain this morning. that 5% is enough to put the share price up today. some people also question the management. it is widely talked about. they keep saying no. they're doing this huge by back to boost up the share price. they may have something else in

the pipeline. a lot of people are speculating -- in order to make the inheritance of the share from the chairman to the next generation cheaper. better ratio.a it seems they are telling the market they are not there yet. >> to get optimistic, maybe it is too soon. the downstream continues to insulate the company by this price. >> i would say that does well with trading oil. bob dudley announced plans to make the company work $60 in

oil. we can defend our dividends, the key issue for him. the opposite view going forward, when you look at the earnings in the rest of the sector, a huge week for big oil. >> we have 50 to 60. if you cut the cost down to that level that will mean a lot of possibility in the years ahead. >> that is a subtle shift in there by someone widely -- someone widely respected. why are southside analysts finally getting optimistic? is about cost-cutting or some form of revenue stability? >> i think the cost-cutting is key. oil is not going to default but

we will start to see those cost cuts take effect. some analysts are saying this is the bottom of the earning cycle. it may not be the bottom of the oil cycle. >> real simple here. this is inflation-adjusted commodities. down we go breaking through new commodity lows, getting near that multi-decade trend. >> oil has the ability to flow quickly. it is hard to store and the issue is that winter might be if oil support -- it has the ability to crash quickly. natural gas is set to break through below two dollars.

that is huge for the american economy. >> that has been part of the issue. it has been almost a in -- almost and iphone 6 hangover. especially in terms of these -- specially terms of the december guidance. our stock starts to not just tread water but they prove there is a lot of gasoline on success. >> where is all that coming from? >> there are two major issues. you have an existing base of ios users that are probably not upgrading their phones. customers can get close to upgrading every year where they were unable to do that before. this will create a new virtuous cycle. not only in this december

quarter but going out until next year. >> about one third -- what they are seeing is 30% of those for placing their phones are coming from android phones. >> it really is about how much room there is. >> that is naturally the key. that is a moving corner. iphone seven.

excitement over growth and concern over controversy. that sums up a week in health care. it's take a look at valley pharmaceuticals. >> values out with a

relationship on the -- with a relationship on fillet or. the founder initially raised questions about valiance accounting practices. >> to protect our shareholders we promptly coordinated with our outside regulatory counsel to make a request that the sec investigate citroen. our counsel has met to discuss the matter. >> have you been contacted by the sec? >> no i have not. >> what is your response about citroen research? >> valley in stock was down 35% based on some of the comments that came out of bernie sanders. my first two articles wished to discuss price gouging and

operations. the stock was down on valiant earnings. it was last week the stock took another leg down where i started to discuss fillet or and their undisclosed relationships. what is most unsettling is one key made analogy of yelling fire in a crowd -- fire in a crowded theater. what i did as i walked into a theater, i smelled a lot of smoke, and i said, excuse me, there may be a fire. differencebig between the two. investors had a chance to walk through the theater, see the response of the owner, and they actually decided to leave the theater. let's keep exactly what they said in context. >> i wanted you inside bloomberg terminal to show you how valley

and traded during the market and are you as her hero when they added the headline. saying the accounting issue was confirmed as appropriate. beganhe conference call and mr. pearson made the comment about you yelling fire in a movie theater. seen the stock reached its highs of the session, although it is off three dollars. i wanted to get your reaction to some of the action the company has taken. what does that signal to you? them a value x has made a lot of money. my mother saying my report was correct, what does that mean? he has been married to the company pretty much. it's the relevant. >> what about the action from analysts that concerns are over

can -- are overblown? disclosure shows a limited andity to channel stuff farmers make of a relatively small percentage of overall sales. is that disclosure sufficient? for making a small percentage of overall sales, the important part is what it represented to their organic growth. if you compare them to a johnson and johnson, they are still relatively expensive. the reason they are given this premium is because of organic growth. accounting rod, in my research ofugh the publicly available information, is not an accounting god, it is an insurance fraud. will eventually

lead to accounting fraud. as much as mr. pearson has made me the poster child for someone shorting his stock, i have to say some of the best workout there was done this weekend. i feel flattered he has made me poster child. it has been either one that was laid off at the development department. there are reasons why his stock was here. it is not because of me. >> it is kind of like some hedge fund guys are going at each other. does it matter if there's a bigger story at play here? >> the short seller put out a report.

his claims haven't necessarily been borne out quite honest anything about these false customers and inflated sales, valiant has been a lot of things to refute them. what they did do is raise a whole bunch of questions about valiance, how they have relationships to distribute drugs in the united states. why they had not disclosed some finance interest that they had in them you and how aggressive their practices are and are they pushing to our to inflate or distort the demand of the u.s. markets? there is still a lot of questions and how these operate. >> valiant almost a poster child m&a. that challenge would valiant was developing for the rest of the industry? perhaps special cases because entire model is built on his issues. there are companies that have

used models have this slogan. i think the search and development, not research and development. find the drugs that have gone a long down the road. the rest of pharma doesn't necessarily follow that pattern. for products in development or give access to keep for research and development. i don't think this will necessarily cap.

david: business newsmakers from around the globe find their way to bloomberg every week. here with most -- here are some of the most intriguing interviews from this week. >> with equities in general, do you think we are going to see a shift? >> with last weekend with amazon , there is this at scale play. alibaba is a very aggressive company. i like what they are doing with the states. lots of investment in e-commerce companies here.

comcast had good numbers today. they had him creating new investment arm. these companies are very aggressive going up trying to consolidate. >> when you say the bigger getting bigger, only because they said if you were positive evaluation is here i have to give money because they are going to get closer. that is not necessarily the case. zero-sumseems to be game winners in each of the categories. social networking is one big player. can get in that group. google certainly separated itself in dramatic fashion. i would say alibaba is the main player. momentum ando much

so much momentum with the walmart. it is flipped now. the new media has become the traditional, how everyone will be transacting and doing their work. >> there with such positive news yesterday and a huge win for yahoo!. is it too late? >> i think it is a difficult transition for them. from an advertising standpoint when you are so dispersed around the world. they don't have a real subscription kind of business. they are struggling on their e-commerce business. they have one revenue stream, which is advertising. valuerket doesn't advertising these kinds of revenues as they do e-commerce or software. >> you mentioned liberty media.

they did come here and make some investments. do you see alibaba as making an amazon move from e-commerce into a content company? >> they launch their own kind of prime service streaming video. in the web service business and conference business , really a big data platform. bringing tires and sellers together. you have running after those opportunities. merely look and say there is such a massive amount youuman capital that wouldn't be discouraged by the fact we are seeing a slowdown in the overall economy? thatthink if you get position quickly and they are doing a good job, i would be buying alibaba right now.

them extremely proud of the entertainment proposition delivering. gaming attractions than the rest of the integrated resorts in all of macau combined. time to review new test the revenue we generate from gaming is always much much higher. it is important to follow in the footsteps of what the government wants. as a point of differentiation, ultimately casino gaming is be the financial end. without that component we wouldn't be able to build these amazing fantastic things. tables out of50 the 400 you wanted. what does that signal to you, given the environment and annual growth rate environment. happy because there could

be much worse scenarios. significant impact in terms of the model we are looking at. at least two for three years ago. we built these properties for 20 and we arethe road very confident given that what we are offering your so different it is going to be a success. there are some macro forces causing this. they are not targeted in the gaming industry. ultimately the customer basis china. china going through its own challenges right now. still the bestis graphical location. >> how concerned are you that this refugee crisis will stifle moderate politicians? politics in europe will become more extreme?

i think that is europe with hundreds of billions of people can accept hundreds of thousands of migrants. on one condition, that we have a common quality and we don't think to leave the burden only two border counties. it is unbelievable that we didn't have a common european policy on migration. we are slowly building a new comment policy. without if the crisis will be serious. how do you feel about ankle and merkel who is becoming europe's only leader? >> in the next three months the migration lows from the mediterranean through italy and the oriental rules, turkey and

greece, i don't think we have to blame turkey for this kind. turkey can have a role contributing to the solution. the origin of the crisis is not turkey. >> you mentioned syria. and there are live pictures of the human tragedy. -- concerned are you the eu that we have so many divisions at heart that it is a most border, leto have a alone coming up with a common policy. think to the fact that until the last amount of april, there was no migration common policy. italy asked and convened a summit on migration at the beginning of may in the then weanean area and build some basis of a common

policy. risk is the single countries are blaming their neighbors and everybody is saying the border countries, italy, greece should have the burden. i think this is ridiculous and such a major problem should be faith by the entire european union. and some positive steps are there. we need a little bit more engagement.

david: welcome back to bloomberg best hit this time to sample the best stories. >> james bond and product placement have gone hand-in-hand since the films were produced. chum -- sean connery references domperidone.

in die another day they had 20 brand partners on board. daniel craig and his interpretation of bond. and authentic to his interpretation of james bond. very obvious placements. eva green's character as to james bond on a train she is going to size him up. that has me be gone a little too far. if that had been it that would have been fine. her reaction is when the audience said -- that is when product placement doesn't work. >> on your best chance of saying alive -- i'm your best chance of staying alive. >> the websites have been going bond isout what james wearing, what he is going to be

drinking. they changed the belvedere logo to make it the mi five offices. representsnd goes he and personifies their brand and their image. that is why you have heineken. really wanting to get behind premium brands. wanting to get behind someone who represents who they are. pamela excellent choice. -- >> excellent choice.

it is in the 50's that a race to elevate really economist here: going. g.m. unveiled a concept car, but it is not harbored you know create it as a fighter jet controlled by magnetic strip. gm teams up with rca to develop a driverless car with radio frequencies. the cars are supposed to be commercialized by 19 five. that doesn't happen. it's packed full of computers and doesn't work so well. gmc's potential and leader teams up with the university to explore driverless technology. in 1998. found in 2005 the grand challenges is held. the car developed by again insist -- named sebastian wins.

at the 2007 challenge they placed second on the gm carnegie mellon 18. -- carnegie mellon team. g.m. cuts jobs. conceptls an autonomous vehicle built with the same technology built in the 2007 car. google expands its driverless car program. and the race kicks and high gear. g.m. and segway make the final version of their earlier model. who unveils a fleet of test vehicles retrofitted. states passed laws allowing trevor less cars. expands into gm's territory and build its own car without a string miller pedals.

in 2015 gm shows up to cadillac with the super cruise feature. they plan to sell the sedan in 2015. google says they have driven over one million miles in their driverless cars. they sometimes can't distinguish between trash and people. we could see the cars as early as 2017.as early recognition, artificial intelligence, all part of the work done here at the silicon valley arm of the chinese internet search giant. are in a unique position to see the best ideas from beijing and to put them together to create things no one else has created. >> meet the mastermind behind google praying, one of the -- will bring -- behind google

brain. less than five miles away from google's headquarters. >> i'm excited about the potential of ai transforming health care. we are working hard on that. >> what is next is one of the first projects to emerge from the learning unit. in an appdoctor called at the doctor. >> the system has a lot of intelligence. people can describe their symptoms and the symptoms will use speech recognition.

>> this is all part of robin of letting vision users connect with nearby businesses who their smart phones. it is a vision he believes in so deeply. in total by setting aside $3.2 billion over the next three , that number is only expected to grow. get speechn recognition to a level where was completely natural, where it didn't just have 90% accuracy but 99% accuracy, that would be totally transformative. >> i know many people who side good portion of their hard-earned wealth lost in

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david: that wraps up this edition of bloomberg best. let's take a look at some charts that tell the story of this week in business. hard to imagine doing business without money. for thousands of years people didn't get along without money. >> i'm joe weisenthal, cohost of what you missed. as expected the fed did not raise rates. everybody knew that was going to happen. these seem to open the door for a fed rate hike in december. they removed a line about -- they even talked about what it would take to get a great hike in december. you can really see that showing up. this is that one-month chart of

government bonds. these short-term interest rates are highly sensitive to that policy because the fed controls short-term interest rates. big surge on the yield for government bonds. we are seeing other reactions to the dollar is higher. can really see the instant market reaction to the fed, anticipating higher rates that people have thought. beenhing people have surprised by is the u.s. economic data had been mediocre lately. seen as a reason to may be delayed the hike until next year. it definitely looks like there is a possibility of a hike this year. >> this week it was all about the fed. hinting at the possibility of hiking rain -- hiking rates, putting 2015 back in play. after the meeting, a dramatic change.

china changeder its one child policy. a jump in share prices. and shares in germany's weakest bank, plans to revile the plans to revise profits failed to impress investors. just a monster month for october. the biggest month of gains.

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