♪ >> coming up on "bloomberg best ," thee stories that shaved world in business. the paris terror attack a significant question about global security. the shape of things to come. hating soft targets. erik: to the world's largest hotel chains join forces to the outlook may not be so bright for macau's casinos. we explored the topic of tech valuations get a legendary oilman's thoughts. >> i feel like it fell through a

10 story building. 7 all this and best erik: all this and much more straight ahead on "bloomberg best." ♪ i am erik schatzker. " acome to "bloomberg best, look at the most important business news and analysis from bloomberg television around the world. the reverberations from last friday's terror attacks and paris were felt all week long. bloomberg reporters were on the scene of ground the globe as the story developed. a major concern in the wake of the attacks has been security. of whore getting an idea may have been involved and how they got into the country. all of that is going to have a big airing on what happens next. francine: how many lessons are you seeing being asked on why

french intelligence and security could not stop these attacks? guy: one of the guys they have identified was under court supervision. he skipped that. a guy they had under court supervision, they lost. heard, there are so many radicalized young men and women who have been coming back from syria, it has been impossible to track them. it is a legitimate question that needs to be asked. two french resources match up to the scale of the task of a have? that comes back to the political story. elections take place next month. >> the individual guy was discussing, he was under surveillance. attackers thatve were identified.

with a friend's vice-chairman of foreign affairs and asked how it could happen. 7000 people they need to monitor. they do not have the resources to monitor every one of these people. she did call on having a longer database, one that has a longer shelf life. >> william cowan joins us from washington. >> this is the shape of things to come. intelligence our and immigration policies. we can expect more will come in europe and the united states. it will be tougher in the united states, but not impossible. we have to have a long-range strategy and work closely with our allies. here i would add, russia.

joins usl chertoff from washington. give us a sense whether this is another one of a lot of attempts or is this different given the nature of attacks? michael: it reminds me of the mumbai attacks back in 2008, when you had multiple actors going around the city. it suggests ability to do cross-border planning. we have not seen much of that lately. it is alarming. if you put it next to the airliner being downed and the bombs in beirut, it suggests isis is working on a robust effort outside of the area of its immediate operations to carry out terrorist attacks. stephanie: one-off attacks might

not have global impacts on business or economy, but they end up being rick routing tools -- recruiting tools. is that what we could see happen here? michael: that is right. the strategy is to elevate their brand as the worst terrorists around and that attracts people to fight in syria and iraq and to carry out operations at home. >> brendan greeley joins us live. the state of emergency imposed, francois hollande seeking to change laws governing states of emergency. what you have now is a state of emergency that allows searches without a warrant, without approval from a judge. what he is looking to do is something proposed by the last combine a state of

siege, where there is military control and a state of the, expanded powers to fight a new kind of war. what you have seen tonight is current all acts of over the city. parisians have agreed to sit in they tonight, exactly what were doing friday night when the attacks began. you see some effects on commerce. people are going to work. lindsay of traffic around me. larger events have been canceled. sony, airbnb, they have canceled events in the city. >> the former u.k. minister of state security joins us on set. >> the french government has declared and the parliament has agreed to three months state of emergency.

two things are happening. one, they will go after all of the people as they and cover evidence. something else is happening. given the law is relaxed about the way the police can go after people, they will seek to clean a largee will see number of suspects or people involved in conspiracies, they will be able to pursue them and take some into custody. >> we got statements france was , whicho use european law did not mean european military action, but more european intelligence sharing. is that not being done already? >> you can always include a level of intelligence sharing.

the level between europeans is not as great as it could he. ofre is evidence in the past national authorities knowing things they failed to pass on. there is more you can do. ♪

back to "bloomberg best." into focus this week as nations responded to terror attacks in paris. it's part discussions -- it has sparked discussions on bloomberg and forced change of the world leader meeting in the g20 summit in turkey. yesterday was consumed by what happened in paris, the conversations about terrorism, the migration crisis. conversation for the dinner last night. does that mean world leaders were distracted from the normal issues they discussed? no. thes a question i put to canadian prime minister. >> the events in paris are on everyone's mind area that is how we work towards a greater

understanding across the g20 nations. it will be an important discussion to continue to have. >> we had the russian president with the british prime minister. coming out of that meeting, a change, perhaps, in the tone of the relationship the british prime minister, saying they will work together on syria, the russian president thanking the british prime minister for --. it shows how the russian president has gone from pariah to player. at the g20 last year, he had lunch by himself, he left early. irrespective of their differences, we are seating -- we are seeing leaders coming together. >> the major concern as we end

delivering what terrorists want. we slow down our economies by overreacting and we trigger a series of taking points. we have to be careful about how we respond. if you shut down the french economy completely because you are worried about any event, what is going to happen? gdp, trade collapses. the french are worse off. is proposing doing that. what we are seeing is a crackdown on the thousands of sympathizers and supporters of islamic state inside france. not always get the future right. what we are dealing with is a threefold crisis. a conflict in the middle east and africa, secondly, an influx of people, in the millions,

heading for northern europe, some, a small minority, but enough terrorist sympathizers and generations within europe that support extremists. mohammed: -- on friday, did they become more anglo-saxon with this terror event? >> i would like to see the united states get a little more french. it has been britain and the united states that has been holding back. we need to get more french. the french were highly effective against al qaeda in mali. they have to get tougher domestically. french and belgians have been slow on the uptake. blamedident obama was

for his lack of action. >> barack obama has made no bigger mistake than over syria. , 2011, 2 thousand 12, 2013. in 2013, he blinked and it became a think dotted line. he has let the russians back into the middle east. we had more or less kicked them theof that region in 1970's. nonintervention in syria has been a bigger issue than intervention in iraq. the security pact is more important than a stability pact. the words of francois hollande, signaling he is prepared to use accor five deficit reduction in sacrifice deficit

reduction in the name of --. i want to bring in the bloomberg team to get the latest from brussels and paris. guy johnson in paris. you look at this line coming out of france and the last 24 hours and you wonder what takes precedence. security at the sacrifice of financial stability. is that the direction france heads in, and the rest of europe? >> a number of countries will go down that road. you have the answer when it comes to france. the number was meant to be 3.3 next year. the president and the prime minister are making it clear that the numbers will not be hit. the numbers they intend to hit our 5000 more police, 1000 new customs officers.

needs ald argue europe fiscal input at the moment. maybe this is a way of achieving that. you could argue you get two for the price of one, more spending into an economy that needs it and the security services get what they need. for those in paris, maybe not in brussels. in brusselsols is now. you have listened to the debate. let's be clear. france is not singling -- signaling they will throw the towel in. how does brussels and the eu accommodate with the french want to do? have the means to accommodate. whether or not they have the will or sympathy to, we will not know. leeway ise how much given. you can listen to what was said

about the refugee crisis, especially in greece, saying it was an extraordinary event. it can trigger the suspension of the eu budget stability pact rules. side, i was at the commission and saw a bunch of generals, in. come in.of generals criticism that nato countries are not spending enough, not enough percentage of their gdp on defense. been a criticism from the u.s. and u.k.. wake of the attacks, over 20 governors have announced opposition to admitting syrian to states here in the u.s. david miliband believes it is the u.s.'s duty to help. the firstis

consideration that sits along any determination. refugee settlement has been a success story for america because there are security that inc. processes -- security vetting processes in place. the country has an incredible history of refugees coming in and being business leaders and political leaders speak to the humanity of the country and the competence and running effective security systems. the suggestion we can substitute the word terrorist for refugee is wrong. america is insulated by the benefit of geography from the extraordinary convulsions in the middle east. it would be a sadness if a consequence of the paris attacks was for america to close down. this is a country that can show the world how to bring in refugees. ♪

erik: welcome back to "bloomberg best." with marriott's agreement to purchase starwood. it would create the largest hotel company.

we spoke to people on both sides. on thehotel word buzzing news of marriott and starwood coming together. stephanie ruhle has very stern like with her -- has barry stern llich with her. stephanie: you started the starwood business. what do you think of this deal? >> it is an interesting merger. i thought the stock was overvalued. i got a lot of calls from friends asking my opinion. i was surprised. they did a smart transaction. they used stock. they are spinning off the low multiple timeshare business. there were a norm us sin were enormousere

synergies. it is good for starwood. this weight going and scale. i hate to see the company not be around, i did not want to see them flounder. you want to see your kids grow up, find a good partner, get married. arne has done an amazing job with the company. up this morning following the announcement. earlier in the year, we heard -- starwood hired lazard, you were not interested. what happened? arne: we tried to study the company and looked to be expensive and a huge bit of work. stephanie: that is something you would want to buy. initially we pulled away

from it. as the summer went on, we watched. stocks moved in our favor. the economics of the deal became more attractive. we watched the evolution of our marketplace. you think about online travel agents of acquiring of the companies, the way google is using hotel finder to make hotel , all ofions, alibaba these technology platforms investing money in connecting to the travel business. we thought by being bigger we would not have to support as many utility-like systems. ofcould spend hundreds millions of dollars more on consumer facing technology and other inks to tie our relationships to our customers. stephanie: the thing that appears to be growth opportunity is airbnb and platforms like it. make ald you want to

move staying in the traditional universe was starwood? the product we offer is a great product. there are still the vast majority of travelers who will stay in our hotel over the uncertainty of staying in somebody's apartment. a $3.5 billion deal. shareholders will get pretense a shared dividend. we are joined by the cable and wireless ceo. welcome to the program. congratulations on the deal. are you pleased with the price you have managed to achieve? >> yes. ebitda.got 12 times

they bring a lot of content to us. they bring scale to us. it will be good for our people. they can develop more in the region. it is good for our u.k. shareholders. >> you talk about the release of liberty custodians being the -- of business. >> they take care of their businesses. they look after their people. --, which is enjoy the work you do, be passionate about customers and invest in

content. the market isow responding. good news for a brand that has seen its shares plunge. what was behind these better numbers? nothing bad happens. we have seen some disappointing results. i think it was a sigh of relief from investors. up.-store comps were when you look at the other as we have seen with macy's and nordstrom, ugly numbers coming out of retailers. for walmart to say things are better than did, that was enough to give investors confidence in

the stock. >> a record four-year profit after a boost in ticket sales made up for disruptions in 2015. us now, carolyn. great to speak to you. can you give more detail around your guidance. to want to steer the market in a different direction. you look positively at the long-term outlook. carolyn: our results are good. brilliant to the people. by revenue.driven ticket prices are down. it has been made up of non-seat revenue, people spending money. people rebooking with us and spending more when they do. that is what gives us a lot of confidence about the outlook going forward.

we have said we are using our purchase rights and we have purchased 36 more aircraft. we will be able to replace 10 older aircraft and use the deepener to expand and our strategy across europe. lots of organic growth opportunities for us. all of the markets appear strong to us at the moment. consumer spending is better. economic outlook is improved. falling. stocks the gaming downturn will stretch into next year. >> the declines have been going on for some time now.

factors remain that are causing these the kleins. this year, and the first 10 gaming $4.5 billion of revenue in macau. a drop coming up next year. the chief executive saying they're going to take a closer look at several issues. casinod affect what the companies are taking in. if it drops to 25 billion, that would be the lowest since 2010. that is a fair drop. factors causing it, i imagine this continuing to be the crackdown on access and assumption and the slowing economy is a big factor. we will see this continuing downturn in macau. ♪

erik: you are watching "bloomberg west." -- bloomberg best." we will begin our roundup of the week's test interviews at the conference in new york.

stephanie: we have to start with oil prices. you said by the end of the year we would be looking at 70. santa claus is knocking and that is not where oil prices are. >> we aren't at the end of the year. ofphanie: in the month december, you think we will see a huge recovery? who fell like the guy of a 10 story building. when he went by the fifth floor, he said so far, so good. that is where i am, trying to make a joke out of it may be a bad call. if i am off, and be off by six months. stephanie: are you willing to say it is a bad call and i'm going to sell?

>> we are in a mode where we expectave power and we -- >> you are out of the market right now. meaning what right now? no exposure? if people see you selling, as , should in some cases they interpret it as capitulation or something different? i had it right and we shorted it 98 and then we had it wrong. bottom.ve we saw the we did not see the bottom. we went back in long, took lost his and are waiting for an entry point again. risks becoming the anchored.

view.s the >> i would turn the argument the other way. where we clearly said -- you communicate that. >> they make their own analysis about the situation. is readingbehavior about the mandate of the central bank.

i think we communicate our assessment and our reaction function. any assessment, you look at the flow of data, you have to look this whole of how is it?stment, how is you have to make sure expectations stay anchored.

corporations revise long-term expectations. complicates the whole balance sheet. >> you have been in the country for over 100 years. which area? we are going to stay focused on infrastructure. there are important needs to be served in china. these initiatives are important companies.hinese

>> we will likely get an update on their war. you have a fairly unique perspective on what is happening on the ground. you know the headlines. what are they actually doing? >> they have the world's largest wind industry. they have invested in the new levels. there is still the need for coal and coal fired power. it is impossible for china to avoid that. inee a lot of focus environmental responsibility. while. take a i do not think anyone is confused about the need to use air quality and water quality.

>> carl icahn took a big stake. what kind of investor has he been? >> i saw him last week. the idea was -- imposed them. they have been a disciplined investor. they may good noise about the truth behind the business. this is a massive opportunity. lyft is growing fast. >> cases where the united states is not directly hit, but where -- where do you commit american troops on the ground and overseas? this is a unique circumstance not seen before in history, where you have a caliphate that

has been formed, whose energy is maintained and strengthened by its existence to provoke acts of terror around the world. this is a direct threat to our national interests. ♪

erik: welcome back. emily chang interviewed two of the most intriguing and in village will -- and influential people in texas. emily put the question to him simply -- are we in a tech bubble? >> it tends to be a private market bubble. it is not something when you .earken back to a 2001

>> we are not in a bubble in the private market we are in a bubble in the public market. we are at an inflection point heading towards catastrophic events. tech is undervalued. why is there such a diversity of opinion? the question comes down to how much do you believe new things will be invented? inherently, you can build idea, to from an something globally relevant in three years, four years, five years. you look at these new companies. they can be important to affect all initiatives.

that is was we should focus on parent on the other hand, you go okay, a lot of investors are betting on this broadly. you get valuations when you look at a valuation and go why is that valued that way and the answer is people are not distinguishing sharply between which companies benefit from a globalized network age and which companies do not. that is the key issue where it breaks between the bowls in the bears. emily: is it subjective whether or not we are in a bubble? 1999, no one would dispute. click's disputes bubbles in retrospect. clearly, that was artificially inflated and had a re-correction. down to -- itomes looks like some of the valuations are high.

can pinpoint specific companies, which i will not do. you can see where private valuations have been higher. not being market is as affected as much. you get those kinds of things there is say look -- some element of a private bubble. however, the keith incomes down to -- we are going to see more -- the key thing it comes down to, we are going to see more numbers in less than a decade that have global impact. emily: are you seeing down round? >> not privately. emily: we are seeing them publicly. is ipo the new down round? if private market valuations

continue the way they are, we will see more of those. point isction protection. those investors have said we get a ratchet protection invested at the current price. the other ones, when you choose the companies going up, you win on those. speaking of square's ipo, it happens. the stock began trading on thursday morning. emily went to the floor to introduce jack dorsey. you think square did today? jack: it is a moment. i am excited. it has been a long road. this is not something you goal around. builds what can help tools to serve our customers in the right way. i am excited to get back to work. technologyquare a

company or payment company? jack: it is both. emily: a lot of people look at it as an example that these are overvalued? jack: i am not an economist. think aboutdo you the idea that square was not able to live up to a valuation set in the present market? our expectations are if we are serving our sellers. this is a fundraising event for us. going toere are you focus the money? .ack: on our new reader we want to see that on the other side of every transaction. theallows anyone to accept chip card, apple pay. we are buying flowers with her watch. it was amazing. want to see that on the other

side of every transaction because it is fast and easy. when you add more technology and security, the fraud and risk potential goes down. we think we have an amazing opportunity to represent the daily. these are places you go every day. if you see that everywhere, you know you can pay with your phone. it is amazing. we want to make sure we have the logo representing i can pay with my phone. emily: we have been talking about your executive bench. need tohink you will hire a president or coo? jack: we have a significant bench. coo tod the function of the entire leadership team. i am proud of our dynamic and our team and our board. board is focused on what we need to go forward.

david, mary, it is a great team. emily: does a company or ceo inspire you? jack: bob iger. i learned from him every day. just a great ceo, he is a great leader. he runs a business that has multiple parts to it. the business feel empowered. it is diversified. it is a true ecosystem. they have stuck to the purpose of how the company was founded. everything walt started with is still in the company. it is something we can learn from. to build a company that lives generation after generation, walt disney was the first technology company. the first ecosystem company. it focused on experiences. it is fantastic. ♪

erik: welcome back. i am erik schatzker. as we wrap up this edition of " let's lookest, at some stories. becausert is a lag or -- is under pressure. ebitargin is below its talk overall. it is something that is fixed on overall. walmartd to modernize has eroded profitability. you can see the u.s., at the

bottom part of the bar, is stagnant. growth is international. that will drive everything. when it comes to international, he is talking about china, not brazil. net sales continue to suffer. down for tenths of 1% the past order. about what isalk going on with russia, in particular, the ruble. driven economy. the collapse in oil prices have slammed the currency. there has been a disconnect between the ruble and oil. the ruble has gone up. oil is going nowhere. thanks to belief that the common enemy of isis, that thawaps there will be a between russia and the west as they pursue this common enemy. investors are betting that will

be good to russian assets. expectations, u.s., germany, japan, this is the breakeven rate. the difference between government debt and inflation linked bond. it is a way of gauging expectations. in the u.s., inflation expectations rising since september. in germany, they have been rising since august. in japan since may, inflation expectations have been coming down. the breakeven rate is .78%. begs the question -- why is the bank of japan not adding to stimulus? it cap policy rates unchanged today. goldman sake's said the 10 year , -- at 2016.n rate erik: you can get more business

news from around the world at bloomberg.com. i am erik schatzker. thanks for watching bloomberg television. ♪

♪ emily: he is the owner of the world very first model s, and an early backer of tesla and spacex , a fast talker with an unconventional investing philosophy. he has amassed one of the biggest private space collections in the world. today on studio 1.0 is venture capitalist and partner at draper fisher jurvetson, steve jurvetson. thank you for being here.