>> 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. a new casino opens in macau. 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. begin ours where we look back at the week. >> i do believe that there is some evidence that the fed is getting increasingly nervous about being at 047 years now. -- at zero for seven years. unemployment rate likely to grow. and yet we are still at emergency policy settings. that should make policy -- it is an extraordinary period. >> vice chairman fisher agrees that we are at emergency levels.

>> and is the big question -- what many said is the pieces were in place. i know we didn't have anybody else who is examining this very closely. >> our bloomberg economics editor 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. today they say 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 into the statement? >> regardless of what the outcome is they will debate the issues on the merits. i obviously wasn't there. you have a lot of the same debates take place in this meeting that you didn't in the previous meeting. many have kept saying in 2015 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. how much of that as a response

to the ecb last week? 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. tell me what humility and new model building you have learned in the last couple of years. if the model is old, what is the new new for you and your bank? >> many things have been very years. in the past few 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. we were factoring in another cut. what is promising 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. the window of opportunity is smaller. >> 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?

if it can i think it will be 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 manufacturing growth continues to slide. tim: what we are looking for is a little more detail. for example, green industry. that is something moving up the agenda. still 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. >> let's head out and bring in hans nichols, international correspondent. the guidance not great, either.

2015 sales in line with 2014 sales. >> i 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. they still don't have a solid idea of what this is going to cost them and what their technical fixes. 1.8 and the the 1.6, all of the diesel engines. 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. they lost a little bit of market share. about 1% in the european market. sales of audi and porsche, those are two profit centers for the volkswagen group. betty: ford is on a roll, net income more than doubled. wall street estimates and the stock is falling. matt: 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. there was a tax rate difference of one percentage point.

we came in at 33%. 34%.nalysts were at that is the difference of the penny. overall we outperformed and nailed it. >> you came in at $.45 eps. the shares are off. what do you think is driving the stock loss? >> we actually met expectations with revenue stronger and cash flow stronger. our net income was $1.9 billion. we grew volumes up, revenues up. once we get 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 to day stock prices. what we announced was one of the most complete -- completely in line with the company. million.oned the 2.3 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. -- in a while. >> analyst expectatin isn't something that i -- 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 share 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. until we got the surprise from samsung. >> it dug deep into its pockets. not sure how much you are actually touching. it is a 10 million by back. they will do it, we think, inasmuch as for rounds. know, details off of that already. just of a $3.5 billion. bringing this back into the treasury and they will be canceling altogether. quarterly dividend starting next year. let's get those results we

talked about. on theillion, based exchange rate that is about $4.5 billion u.s.. and the net income, 4.6, which i should note is less than half of what apple reported yesterday. many other things like mobile phones. samsung has its hands and many other things. >> mobile phones faces what we are interested in as well. >> it came in a little lower than last year. roughly about 23.8, if i remember correctly. apple was over 11%. the big one was falling. >> let's bring in bloomberg intelligence analyst, good for

you to join us. that had been in the works for a wild. -- that has been in the works for a wild. -- a while. anthea: i would say this comes as a huge surprise for investors. the chair by back was roughly -- it came down slightly from the maximum 5% gain this morning. 2%.aybe 1% or 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

-- buyback to boost up the share price. they may have something else in the pipeline. a lot of people are speculating suppresst wants to order to make the inheritance of the share from the chairman to the next generation cheaper. they can have a better ratio. it seems they are telling the market they are not there yet. we are not thinking to suppress the share price to transaction. >> 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. saying,tting costs and 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. improvedtart to see cash flow. 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. into theu link oil other commodities? will: oil has the ability to flow quickly. it is hard to store and the issue is that winter might be if you do see 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. knuckles.hite feared.er than especially 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? walt: 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.

because all these customers skin then upgrade their phones. betty: 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. it is a huge runway. if 30% of upgraded success, now you will have 60% not the end of this year. that is naturally the key. a little too bearish on the gross prospects here -- growth prospects here. that is a moving corner. iphone seven. excitement over growth and concern over controversy. that sums up a week in health care.

him him him this is ." oomberg best 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. >> andrew, have you been contacted by the sec? andrew: no, i have not. >> what is your response about citroen research? >> valian 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. there is a big difference 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.

>> so andrew, i want to take 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. when the conference call began and mr. pearson made the comment about you yelling fire in a movie theater. instead we have 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? >> -- 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 irrelevant. >> what about the action from analysts that concerns are over blown? disclosure shows a limited ability to channel stuff and farmers make of a relatively small percentage of overall sales. is that disclosure sufficient? >> as 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. as for no accounting fraud, in my opinion through the research of publicly available information, is not an

accounting fraud, it is an insurance fraud. 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. journal andstreet others. it is not andrew. and i feelice 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. they are names we all know. does it really matter or is

there 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 valeant, 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. >> valeant almost a poster child for m&a. that challenge would valiant was developing for the rest of the industry?

>> i think valeant and others, they are 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. they look for products in development or give access to keep for research and development. i don't think this will necessarily impacted that particular trend. ♪ we live in a pick and choose world.

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♪ david: business newsmakers from around the globe find their way to bloomberg every week. here are some of the most intriguing interviews from this week. stephanie: september 29 we saw ali baba hit an all-time low. with equities in general, do you think we are going to see a shift? ted: with last weekend with amazon and with google, 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. that's a good move. newhad their cfo create a investment arm. these companies are very aggressive going up trying to consolidate. stephanie: 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. biggerger are gonna get and the smaller, smaller. >> there seems to be zero-sum game winners in each of the categories. social networking is one big player. see if twitter can get in that group. google certainly separated itself in dramatic fashion. i would say alibaba is the main player.

amazon is the main player. amazon with so much momentum and 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. yahoo!ie: do you see anymore?nt it it too late? ted: 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. the market doesn't value advertising these kinds of revenues as they do e-commerce or software. >> you mentioned liberty media. they did come here and make some investments.

some bets in some content companies. 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. if you are in the web service business and conference business, really a big data platform. bringing buyers and sellers together. you have running after those opportunities. >> do you merely look and say there is such a massive amount of human capital that you wouldn't be discouraged by the fact we are seeing a slowdown in the overall economy? >> i think if you get that position quickly and they are doing a good job, i would be buying alibaba right now. them extremely proud of the entertainment proposition delivering. probably more gaming attractions than the rest of the integrated resorts in all of macau combined. at the same time to review new test the revenue we generate from gaming is always much much higher. for us 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. you only got 250 tables out of the 400 you wanted. what does that signal to you, given the environment and annual growth rate environment? >> we are 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. but at the same time, we built these properties for 20 years down the road and we are very confident given that what we are offering is 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 is china. china is going through its own challenges right now. longer-term it is still the best graphical location. >> how concerned are you that this refugee crisis will stifle moderate politicians?

that 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 to border counties. it is unbelievable that we didn't have a common european policy on migration. we are slowly building a new common policy. without if the crisis will be serious. >> how do you feel about the role played by angela merkel who is becoming europe's only leader? >> in the next three months the migration flows 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. it is the syrian crisis. >> minister, you mentioned syria. and there are live pictures of the human tragedy. how concerned are you the eu -- that we have so many divisions at heart that it is a most impossible to have a border, let alone coming up with a common policy. >> we have to 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

mediterranean. since then we build some basis of a common policy. the 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 faced by the entire european union. and some positive steps are there. we need a little bit more engagement. ♪

♪ david: welcome back to "bloomberg best." it is time to sample the best feature story. >> james bond and product placement have gone hand-in-hand since the films were produced. sean connery references dom perrignon. in "die another day," they had 20 brand partners on board.

daniel craig and his interpretation of bond. it is more real and authentic to his interpretation of james bond. in certain bond movies, very obvious placements. eva green's character as to james bond on a train she is going to size him up. that has maybe 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 crazy about what james bond is wearing, what he is going to be drinking.

and all of this, so belvedere supply, theymited changed the belvedere logo to make it the mi five offices. wherever bond goes he represents and personifies their brand and their image. that is why you have heineken. ford,ger, gillette, tom wholy wants to get behind represent andy who they are talking to. >> excellent choice. it is in the 50's that a race to elevate really economist here: going.

>> in 1956, 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. thectually works, and and cards are supposed to be commercialized by 1995. that doesn't happen. it's packed full of computers and doesn't work so well. but gm sees potential and later teams up with the university. google is founded in 1998. 2005, the grand challenge is held.

challenge, they placed second in the g.m. carnegie melon team. the financial crisis. g.m. cuts jobs. it unveils an autonomous concept vehicle built with the same technology used in its 2007 car. google expands its driverless car program. and the race kicks and high -- the race between gm and google kicks into 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. in 2014 google expands into gm's territory and build its own car without a string miller pedals. in 2014, google expands into gm's territory and builds its own car. in 2015 gm shows up to cadillac

with the super cruise feature. it drives itself in highway traffic. they plan to sell the city and in 2017. maybe. meanwhile, google says they have driven over one million miles in their driverless cars. they have not been driven in heavy rain or snow and they sometimes can't distinguish between trash and people. we could see the cars as early as 2017. >> speech recognition, artificial intelligence, all part of the work done here at the silicon valley arm of the chinese internet search giant. >> i think we are in a unique position to see the best ideas from silicon valley and from beijing and to put them together to create things no one else has created.

>> meet andrew ng, the mastermind behind google brain. less than five miles away from google's headquarters. andrew ng: 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. a sort of robocop meets m.d. a medical doctor in an app called at the doctor. >> the system has a lot of intelligence. people can describe their symptoms and the symptoms will use speech recognition. and they can decide if they need to see a doctor.

>> this is all part of robin lee's grand vision of letting users connect with nearby businesses who their smart -- through their smart phones. it is a vision he believes and so deeply he is willing to bet millions of dollars, and risk profit all without a money back guarantee. total, baidu has set aside $3.2 billion over the next three years, that number is only expected to grow. >> if we can get speech recognition to a level where was completely natural, where it didn't just have 90% accuracy but 99% accuracy, that would be totally transformative. ♪

♪ we wrap up this addition, let us take a look at some charts. that is hard to imagine business without money. yet, for thousands of years people got along without money. got the announcement. raise rates as expected. they seemed to open the door for a rate hike in december. they removed a line about global growth concerns and talked about what it would take to get a rate seminar.he

you can really see that showing up. the yields on government bonds. the fed controls short-term interest rates. there is a big surge today on the yield for government bonds. we are seeing other reactions to the dollar is higher. we can really see the instant market reaction to the fed, you can see anticipating higher rates that people have thought. one thing people have been surprised by is the u.s. economic data had been mediocre lately. kind of soft. reason tos seen as a delay the hike until next year. but it looks like there is definitely still the possibility of a hike this year. >> let's get to the charts that matter now. the possibility of hiking the rates again, putting 2015 back in play.

take a look at the rates before him and after the meeting. a giant change. they spike after china changed its one child policy. an infant formula, and now that couples can have more than one child, a jump in shares. and shares in germany's weakest bank, plans to revile the plans to revise profits failed to impress investors. that was the week that was, now the month that was. just a monster month for october. the biggest month of gains. ♪

♪ francine: it is ranked as one of the top companies, its products are used by people every day. in over five years paul , polman has had a positive impact on the environment. in an exclusive interview i , speak with him about sustainability, cop 21 and what it takes to be a good leader.